Introduction

Egyptian Prime Minister Mostafa Madbouli witnessed the signing of a document identifying and granting land for the start of research and measurements to develop a 10 gigawatt wind power project in West Sohag.

Signing between Egyptian Ministry and ACWA Power

The signing took place between the Egyptian Ministry of Electricity and Renewable Energy, represented by the New and Renewable Energy Development and Use Authority, and the Saudi company ACWA Power.

Expected Project Outcomes

The signing statement states that, in accordance with the land allocation document signed today for a 10 gigawatt wind power project in Upper Egypt, the project is expected - once completed - to generate winds with a capacity of about 50 thousand gigawatt hours of renewable energy annually, as well as reduce carbon dioxide emissions by 2.4 million tons annually, in addition to providing electricity to about 11 million housing units.

Economic and Employment Impacts

Once all phases of the project are completed, it is expected to save Egypt approximately US$6.5 billion in annual natural gas costs, as well as create around 120,000 jobs, as direct employment during the construction phase is estimated to be around 45,000 people. The project will indirectly employ approximately 75,000 people, in addition to 2,500 O&M jobs once the entire plant is completed.

Egypt’s Commitment to Renewable Energy

On the sidelines of the signing, Minister of Electricity and Renewable Energy Dr. Mohamed Shaker said that the Egyptian state has adopted an ambitious program to develop the Egyptian electricity sector on a number of fronts, chief among which is maximizing the use of renewable energy sources and encouraging investment in this vital area.

Cooperation with Saudi Arabia

Shaker stressed that the renewable energy sector contributes to reducing dependence on fossil fuels and reducing carbon emissions, in line with Egypt’s energy sector strategy to achieve a 42% share of renewable energy in the energy mix by 2030.

The Minister of Energy pointed out that this project is a continuation of the historical relationship between the Egyptian state and the brotherly Kingdom of Saudi Arabia and reflects the bonds of fruitful and constructive cooperation between the two brotherly countries, and also confirms the ability of renewable energy sources in Egypt to attract foreign direct investment.

Role of Egyptian Institutions

He added that the project confirms the importance of the role of Egyptian national institutions in creating a low-risk investment climate and positive engagement with financial institutions and development partners, as well as Egypt’s comparative advantage in providing the land needed to produce vast amounts of electricity from renewable energy sources, and also the geographical position of Egypt, allowing to export energy.

ACWA Power’s Commitment

Meanwhile, Marco Arcelli, CEO of Saudi-based ACWA Power, said the agreement confirms their commitment to moving forward in providing Egypt with clean, reliable and renewable energy, which helps promote sustainable development in the country.

He added that this project confirms ACWA Power’s commitment to contribute to a brighter future for Egypt by providing new jobs, as well as preserving the environment and reducing carbon emissions, in line with the company’s vision of saving the planet for the benefit of future generations.

ACWA Power’s Previous Renewable Energy Projects in Egypt

ACWA Power has been present in Egypt since 2015 through existing or development projects, and the company’s project is the fourth in the renewable energy sector and second in the wind energy sector, after the 120 megawatt Benban solar projects, and Kom Ombo solar energy with a capacity of 200 megawatts; and a wind farm in the Gulf of Suez and Jabal al-Zayt with a capacity of 1,100 megawatts.

Source

Source: Al-Mal newspaper.